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Zara case company analysis report - Essay Example
Pages 18 (4518 words)
Management of organization is becoming an increasingly daunting task in the contemporary times, this is due to the ever advancing business world and business technology. Effective analysis of internal and external environment explains the working environment and dependency of an organization on certain factors…
This introduces the concept of organizational flexibility which involves how the organization reacts to changes, decisions and practices towards their resources, capabilities, and business strategies. It is also important to have human skills in order to incorporate the views of other people and manage them well; this will also ensure that the people work towards a common goal within the organization (Alvesson et al., 2009, p. 200). Therefore, critical management is determined to harmonize the workplace, through ensuring that the employees and facilities are managed well and working conditions improved. In order to ascertain this, managers need to rely on management theory and practice in order to deal with the contemporary and future challenges of organizations. This report deals with the internal and external analysis of Zara apparel, a leading company in fashion and apparel industry. The internal environment is analyzed by applying the theory of Porter’s Five Force which indicates a feasible working environment for Zara. However, at macro level, PESTEL analysis highlights few gray areas for Zara. By evaluating the resources, capabilities, and core competence of the company, it is deduced that low cost leadership, instant response to the customers’ demands, and vertical integration are the most promising areas of Zara where it has competitive advantage over its competitors. ...
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